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India at 8th position in ‘Market-cap’ Among World’s Top 10 Nations: Bloomberg

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India leads m-cap gains in top marketsAs per Bloomberg’s recent data on Market capitalization, India remained at the 8th position among the top 10 nations with a market capitalization of $2.8 trillion and its aggregate market capitalization increased 88% in dollar terms this fiscal and leads among the world’s top 10 nations by market value growth this fiscal.

  • This is the sharpest increase in aggregate market capitalization since FY11.
  • In FY21 India’s market capitalization has increased 31% due to the nationwide lockdown and reduced investments but in FY22 m-cap (Market Capitalization) growth increased 88% and became first among the top 10 nations.

Market Capitalization (Market Cap/m-cap): 

  • Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock. Commonly referred to as “market cap,” it is calculated using a formula i.e.

[Market Capitalization = Price per share x Number of shares outstanding]

Market Capitalization Growth Table for FY21:

RankingCountryMarket CapExpansion/Growth % in Market cap
8India$2.8 trillion88%
1US $45.83 trillion67%
2China$10.57 trillion52%
3Canada$2.89 trillion78%

  • The growth of the Indian market is not reduced by COVID-19 induced turmoil and economic uncertainties and remains raising.
  • India’s benchmark Sensex surged 78% so far this fiscal year and became the best performer among the top 10 nations.

Entities Accelerated India’s total market cap:

  • The heavy flow of foreign liquidity either through foreign institutional investors (FIIs) or as a foreign direct investment (FDI),
  • Smaller stocks’ strong returns,
  • Robust earnings recovery, reforms, and fiscal push by the government to boost the economy, most of which are infrastructure-led.

The mcap-to-GDP (gross domestic product) ratio:

  • FY19- 79%
  • FY20-56%
  • FY21-104% -(which is above than the long term average of 78%)
  • The lowest ratio in the past two decades was 42% in FY04. The ratio hit a peak of 149% in December 2007 during the 2003-08 bull run.

Recent Related News:

India has improved its ranking to 7th in the 16th edition of “Global Climate Risk Index (CRI) 2021- Who suffers Most from Extreme Weather Events? Weather-related Loss Events in 2019 and 2000 to 2019” from 5th in CRI 2020, which has been released by Germany-based think tank Germanwatch. The list has been topped by Mozambique followed by Zimbabwe, and the Bahamas.

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CEO – Mike Bloomberg
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